Hedge Fund Owned Hostess To Liquidate

New York (HedgeCo.Net) – Hedge fund owned Hostess, which has struggled in recent years with two bankruptcy filings, is shutting down, gone will be Twinkies and Wonderbread.

Hostess is currently owned by hedge funds Silver Point Capital and Monarch Alternative Capital.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Gregory Rayburn, chief executive officer, said. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

The nationwide strike began on Nov. 9, when the company cut workers’ wages by 8% and benefits by 27 to 32%. If the U.S. Bankruptcy Court grants the motion, the company will then begin to close all of its operations as early as Nov. 20, according to ABC news.

2 Responses to Hedge Fund Owned Hostess To Liquidate

KEEPING IT THOUGHTFULLY HONEST: So why is an iconic American company closing its doors costing 18,000 workers their jobs? Why did the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) organized massive strikes? Didn’t Hostess made profits of $ $2.5 billion sales last year? Is it true that Hostess CEO salary when he joined the company was $100,000 per month that according to a company spokesman? The Wall Street Journal reported the company had already awarded the company’s top four executives raises of between 75 and 80 percent, even though the company had already hired restructuring lawyers. Pay for Performance, hum..THE INCONVENIENT TRUTH: Hostess is currently owned by hedge funds Silver Point Capital and Monarch Alternative Capital in New York (HedgeCo.Net) – Hedge fund owns Hostess, did two bankruptcy filings, is shutting down! Hostess pays Rayburn $125,000 a month, according to court filings. At the same time, (Democrat) Gephardt’s son Matthew, 41, the COO of the Gephardt Group, was put on the Hostess board as a $100,000-a-year independent director.Gregory Rayburn, CEO ,recently was given a $300, 000 salary increase! He said, “We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike.” Its strategy was to impose wage and benefit cuts to its workers as well as cutting lone time contractual agreements with middle class worker earned pension cost and the cost structure. So hedge fund strategy is now lay off its 18,500-member workforce and focus on selling its assets to the highest bidders, then going into bankrupt to get tax write off and the tax payers get stuck of workers retirement payments! Then as reported by Christian Science Monitor, they selling company to but to foreign company ( Mexican company El Grupo Bimbo headed by Mexican billionaire Daniel Servitje Montull, for another nice greedy profit for investors! Hey, does this sound familiar? Isn’t this like Romney’s Bain Capital strategy? The key lenders were Silver Point and Monarch. Both are hedge funds that specialize in investing in distressed companies — whether you call them saviors or vultures depends on whether you’re getting fed or getting eaten.Gone will be “AMERICAN OWNED” Twinkies and Wonderbread.http://management.fortune.cnn.com/2012/07/26/hostess-twinkies-bankrupt/

AJ Perea “So why is an iconic American company closing its doors costing 18,000 workers their jobs?”
Because they are losing Money.

“Why did the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) organized massive strikes?”
Because they didn’t want to take a pay cut that would help the company stay open. They would rather see the company fail in hopes that another company would buy what’s left of Hostess and the new company would give the union what they want.
Why did the Teamsters accept the deal and the BCTGM said no?

“Didn’t Hostess made profits of $ $2.5 billion sales last year?”
Hostess did do $2.5 billion in “sales”, but posted a $341 million loss for the year. Like I said they are losing money.

“Is it true that Hostess CEO salary when he joined the company was $100,000 per month that according to a company spokesman?
The current CEO cut the salaries of the four top Hostess executives to $1,